B Corporations, or B Corps or b-corps, represent a new approach to business where companies prioritize social and environmental responsibility alongside profit. Certified by the nonprofit B Lab, B Corps are businesses or brands that commit to balancing profit with tangible, helpful purpose, driving positive impact in the world. Certification is awarded to companies that meet high standards in areas such as how they govern, their environmental impact, how they treat employees and commit to equity, their community engagement, and customer relations.

What is the B-corp Certification Process?

B Lab, founded in 2006, is an international nonprofit that oversees the application process and certification of aspiring and renewing B Corporations. Companies aiming for certification must complete B Lab’s B application process (called the Impact Assessment, or BIA, which evaluates their performance in five key areas (closely matched with ESG standards):

1. Governance – This measures the company’s accountability, transparency, and ethics from a leadership or executive standpoint.
2. Workers – This criteria focuses on how well the company follows ethical and forward-thinking criteria related to compensation, benefits, employee ownership, and job satisfaction.
3. Community – This assesses the company’s impact on local economies, diversity and inclusion, and charitable contributions.
4. Environment – This reviews the company's environmental footprint, including energy use, waste management, and sustainable sourcing.
5. Customers – This considers customer impact, especially for businesses that deliver products or services intended to improve well-being.

To become certified, a business must score at least 80 out of 200 points on the BIA and commit to (changing to, if needed) a special legal framework that mandates consideration of all stakeholders, not just shareholders. In other words, corporations must not be only shareholder-driven (for their investors) but must legally change their business status to one that integrates all stakeholders, such as their employees, their customers, and the Earth. B Corps must re-certify every three years, renewing their ongoing commitment to the standards and to continuous improvement​.

How Many B-Corps Are There?

As of 2024, more than 9,140 companies across 102 countries are certified B Corps, representing 162 industries. Countless more are aspiring B-corps that are considering or working through the B-Lab Assessment application. This global movement includes businesses of all sizes, from small startups to large multinational corporations, all united by their dedication to a positive social and environmental impact​.

What's the Difference Between B-Corp and Benefit Corporation?

It’s important to distinguish between Certified B Corps from Benefit Corporations:

• Certified B Corps have undergone the nonprofit B Lab’s rigorous evaluation and they maintain transparent impact reports.
• Benefit Corporations are legally recognized entities in certain jurisdictions or states that incorporate social and environmental accountability into their governance structures, without necessarily seeking certification from B Lab. Thus, a business can be either or both, but certified B Corps require the independent verification by B Lab​.

As of 2024, 36 U.S. states plus the District of Columbia have enacted legislation allowing companies to register as benefit corporations. These include major business hubs such as California, Delaware, and New York, as well as states like Florida, Illinois, and Massachusetts. Each state's specific rules may vary slightly, but all benefit corporations are legally structured to consider the impact of their decisions on stakeholders beyond just shareholders—like employees, communities, and the environment.

This legal form allows benefit corporations to legally embed a commitment to social and environmental performance in their governance, aligning corporate goals with societal good and environmental sustainability.

(Pro tip: if you’re considering changing your business legal structure to a benefit corp, I suggest talking with a professional at a large financial institution or tax prep company. Even then, some folks have not heard of benefit corps so you may need to educate them and/or find another professional to consult with.)

Should My Brand Become a B Corp?

Achieving B Corp certification is not perfect (and unfortunately it is not well-known in the general market yet). But the status can yield several significant advantages for a business especially among an audience that is savvy and/or young:

1. Public Trust and Reputation - B Corps are recognized as leaders in sustainability and responsibility, which strengthens brand reputation and loyalty among consumers.
2. Employee Engagement and Retention - Many employees are motivated to work for purpose-driven companies. Certification provides a competitive edge in attracting top talent committed to social and environmental values​.
3. Investor Appeal - Increasingly, investors are drawn to companies with strong environmental, social, and governance (ESG) credentials. B Corp certification signals a company’s commitment to sustainable growth, making it appealing to impact-focused investors​.
4. Competitive Advantage - It makes THE difference. Companies that address social and environmental issues differentiate themselves, setting themselves apart from polluting or greedy companies, and they gain customer loyalty, particularly among ethically minded consumers​.

Even beyond the attraction to a youthful market, there are many vendors and suppliers who are interested in working with a company whose ultimate goal is to produce an eco-friendly and worthy product. Partners and especially investors are eager to support a B Corp because they understand how critical this type of business thinking is, and they want to invest in and partner with those who are working hard to achieve these goals.

How Many Women- and Minority-Owned B Corps Are There?

B Corps have made strides in diversity and inclusion, with more and more B Corps led by women and minority owners. Statistics show that about 61% of B Corps have policies to manage and improve workforce diversity, making them 2.2 times more likely than conventional businesses to actively work on such practices​. These companies often lead in setting industry standards for equitable pay, workplace culture, and supplier diversity.

As of the end of 2024, there are more than 1,800 women-owned B Corps worldwide, and B Corps are twice as likely to have majority-female management teams compared to non-B Corps. The B Corp movement has been supportive of initiatives such as WeTheChange, a community dedicated to amplifying the impact of women-led B Corps, providing support and advocacy for gender equity in purpose-driven businesses​.

Strong Ethical Business Coaching

Selle Impact Consulting is an enthusiastic supporter of companies pursuing B Corp or other organic standards, and we are here to support you. Our online course Natural Brand Certifications teaches you about the wide variety of environmental and social commitments your business or brand can make, including B-corp, organic, fair trade, WBENC, and cruelty-free.

Our powerful coaching services walk your business through these processes and help you strategize and build a solid business plan and vision. We support strategy and business planning, leadership coaching, project management and fractional services, and workshops & trainings.